PBF Logistics Increases Quarterly Cash Distribution by 10% to $0.33 per Unit and Announces Fourth Quarter Earnings Results

PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today fourth quarter 2014 net income attributable to the partnership of $15.2 million, or $0.47 per limited partner unit. During the fourth quarter, the Partnership generated earnings before interest, income taxes, depreciation, and amortization (EBITDA) of $17.6 million and distributable cash flow of $16.7 million.

For the period from its initial public offering (IPO) that closed on May 14, 2014, to December 31, 2014, the Partnership reported net income of $30.0 million, or $0.94 per limited partner unit. For the period from the IPO through December 31, the Partnership generated EBITDA of $34.0 million and distributable cash flow of $32.8 million.

Included in our results for the fourth quarter are $540.0 thousand, or $0.016 per unit on a pre-tax basis, of transaction expenses included in our general and administrative expenses related to the recently completed acquisition of the Toledo Storage Facility, which closed on December 12, 2014. Also included in our results for the fourth quarter are $433.0 thousand, or $0.013 per unit, of expenses related to unit-based compensation.

The Toledo Storage Facility is located at PBF Energy's Toledo Refinery and consists of approximately 3.9 million barrels of combined feedstock and product storage capacity and related facilities, including a propane storage and loading facility. The total consideration of $150 million for the acquisition consisted of $135 million in cash and $15 million of PBFX common units, or 620,935 common units. In its first full year of operations following the acquisition, the Toledo Storage Facility is expected to contribute approximately $15.1 million of EBITDA, supported by a ten-year term storage and terminaling services agreement with subsidiaries of PBF Energy containing storage fees and a minimum volume throughput commitment of 4,400 barrels per day at the propane storage and loading facility. Annual maintenance capital expenditures are expected to average approximately $3.0 million.

"The fourth quarter was another growth quarter for PBFX. We followed our acquisition of the Delaware West Rack with our acquisition of the Toledo Storage Facility. In doing so, we have significantly increased the annual expected EBITDA of the Partnership since the time of the IPO. As a result, the board of directors of the General Partner has increased the quarterly distribution by 10% to $0.33 per unit to reflect the first full quarter of earnings contributions from the Delaware City West Rack during the fourth quarter," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "We are actively pursuing opportunities to grow and diversify our earnings streams and increase distributions to our unit-holders."

As of December 31, 2014, the Partnership had $14.2 million in cash and cash equivalents and access to an additional $49.9 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future acquisitions.

PBF Logistics Announces Quarterly Distribution

The Board of Directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.33 per unit. The distribution is payable on March 4, 2015, to unitholders of record at the close of business on February 23, 2015.

This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Non-GAAP Financial Measures

This earnings release, and the discussion during the management conference call, may include references to non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures including, but not limited to, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Distributable Cash Flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBFX's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP financial measures used in this release and reconciliations to the most directly comparable GAAP measures.

Conference Call Information

The Partnership's senior management will host a conference call and webcast regarding earnings results and other business matters on Thursday, February 12, 2015, at 11:00 a.m. ET. The call can also be heard by dialing (800) 862-9098 or (785) 424-1051, conference ID: PBFXQ414. The audio replay will be available two hours after the end of the call through February 28, 2015, by dialing (800) 374-1216 or (402) 220-0681. The call is being webcast and can be accessed at PBF Logistics’ website, http://www.pbflogistics.com.

Forward-Looking Statements

This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Form S-1 and prospectus relating to the initial public offering of the Partnership's common units. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. PBFX assumes no responsibility or obligation to update forward-looking statements except as may be required by law.

PBF Logistics LP

PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.

Results of Operations (Unaudited)

Factors Affecting Comparability

The following tables present net income, distributable cash flow, earnings before interest, income taxes, depreciation and amortization expenses ("EBITDA") and related operational information of PBF Logistics LP ("PBFX" or the "Partnership") for the three months and year ended December 31, 2014 and 2013. The financial information presented contains the financial results of PBF MLP Predecessor (the "Predecessor"), our predecessor for accounting purposes, for periods presented through May 13, 2014. The Predecessor includes the financial results of a light crude oil rail unloading terminal at PBF Energy Inc.'s Delaware City refinery (which we refer to as the “DCR Rail Terminal”), and a crude oil truck unloading terminal at the PBF Energy Inc.'s Toledo refinery (which we refer to as the “Toledo Truck Terminal”) which were acquired from subsidiaries of PBF Energy Inc. ("PBF Energy") during our initial public offering, completed on May 14, 2014 (the "Offering"). The consolidated financial results for the three months and year ended December 31, 2014 also include the results of operations for PBFX for the period beginning May 14, 2014, the date PBFX commenced operations.

The financial information contained herein of the Predecessor and PBFX have been retrospectively adjusted to include the historical results of a heavy crude oil rail unloading terminal at PBF Energy's Delaware City refinery (which we refer to as the "DCR West Rack") prior to its acquisition by PBFX on September 30, 2014, and a tank farm and related facilities located at PBF Energy's Toledo refinery, including a propane storage and loading facility (collectively referred to as the "Toledo Storage Facility") prior to its acquisition by PBFX on December 11, 2014. The DCR West Rack and Toledo Storage Facility were acquired from subsidiaries of our indirect parent company, PBF Energy (collectively referred to as the "Acquisitions from PBF"). The results of the DCR Rail Terminal, Toledo Truck Rack, DCR West Rack and the propane loading facility of the Toledo Storage Facility are included in the Terminaling segment. The storage facility of the Toledo Storage Facility is included in the Storage segment.

Our Predecessor generally recognized only the costs and did not record revenue for transactions with PBF Energy prior to the Offering and Acquisitions from PBF. Affiliate revenues have been recorded for all of our assets subsequent to the commencement of the commercial agreements with PBF Energy upon completion of the Offering and Acquisitions from PBF. As a result, the information included in the following tables is not comparable on a year-over-year basis.

Non-GAAP Financial Measures

We define EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization expense. We define distributable cash flow as EBITDA plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes, to analyze our performance. Distributable cash flow will not reflect changes in working capital balances. Distributable cash flow and EBITDA are not presentations made in accordance with U.S. generally accepted accounting procedures ("GAAP").

EBITDA and distributable cash flow are not measures prescribed by U.S. GAAP (“non-GAAP”) but are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

• our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
• the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
• our ability to incur and service debt and fund capital expenditures; and
• the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities.

We believe that the presentation of distributable cash flow will provide useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors an enhanced perspective of the operating performance of our assets and the cash our business is generating. The GAAP measure most directly comparable to distributable cash flow is net income.

We also include the results of our operations excluding the results of our Predecessor. We believe that the presentation of our results of operations and capital expenditures excluding results of our Predecessor will provide useful information to investors in assessing our financial condition and results of operations. We believe investors want to analyze operations of our business under our current commercial agreements with PBF Energy.

These non-GAAP financial metrics should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial metrics may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.